Stocks that are falling in price. Reasons for rising and falling stock prices

Good day, my dear reader!

We have already talked with you about what an action is. For many, it is not much of a problem to calculate when to buy shares, but selling them is much more difficult.

Here are seven rules, following which you can close positions with minimal losses.

Rule 1. The stock falls by 7-8%.

Most important rule: you need to "dump" stocks that have fallen by 7-8% from the purchase price. Closing positions with minimal losses helps you save capital and protects you from big losses. Let's say we have a portfolio of stocks.

It is clearly seen here that selling shares with a loss of no more than 8% helps to have good income, despite the fact that 5 out of 7 stocks were unprofitable.

For individual investors, closing positions with minimal losses is the golden rule.

Even in a rising market, investors must remember that not every breakout ends successfully. Some stocks rally in the later stages of a breakout, but can reverse sharply and fall quickly. Such behavior is one of the main sell signals. Although other stocks may form a "cup" or "double bottom" pattern.

Whatever the cause, close positions first and ask questions later .

One of the prerequisites for success in the stock market is to close losing positions with small losses, as well as holding profitable positions at their maximum.

Closing out losing positions in every stock with poor returns is the best defense against companies that misinform, deceive, or overestimate their prospects and future earnings. If the company goes bankrupt, chances are high that your shares will be worth a penny. As one of millions of investors, you will not be able to influence the lawsuit.

Institutional investors are another matter. They can use their connections and financial resources to recover losses incurred through the courts.

When stocks don't meet rosy forecasts, some fund managers sell stocks of companies in a flash. This is why rising stocks can fall so hard and so quickly. Prompt closing of unprofitable positions prevents the growth of losses up to 15, 25, 40 or more percent.

Rule 2: New highs on low volume.

Trading volume is a great way to determine whether a rise or fall in a stock's price is real. The more shares bought, the more demand. However, when a stock makes a new price high on less than normal volume, this indicates that demand is decreasing and the stock may reverse.

New price highs on light volume are early sell signals.

Most investors want the stock they own to rise and continue to set new price highs. However, if the growth occurs on low volume, you should be on the lookout.

Stock setting new price highs at high volume, indicates that investment funds and other serious players are likely to buy up these shares. And since these institutional investors make up about three-quarters of the market volume, you want to be on the same side with them.

However, stocks rising to new heights at low volume, indicate a loss of interest from the "big money". Institutional investors, on the contrary, may start to sell, which can lead to a sharp drop.

This does not mean that you should exit positions as soon as the price makes new highs on low volume, especially in the early stages of a move following a recent base break. But if the trend continues, you will most likely want to close at least part of the position and watch for other sell signals.

Rule 3: The stock price is flying too high, too fast.

Some stocks, especially the most successful ones, tend to end up tragically. They soar upward like never before, then plummet. This "climactic spurt" occurs when, after a sustained rally, a stock soars 25 to 50 percent or more in just one or three weeks on increasing volume.

Many promotions large companies end their growth with a climactic jerk.

The situation in which the price of a stock rises too quickly too high does not seem to be a problem. However, if the stock "shoots" even higher in a short period of time after a significant increase following the breakout, then it may soon reach its upper limit.

Leading stocks often take off "at the speed of light," a situation called a "climactic limit" or "rooftop blowout." Excited investors push the stock price to the boiling point. A stock often ends its climactic run with its highest single-day profit since the breakout. Selling during this period will maximize your profit.

Why don't you want to keep holding the position? If a stock moves up too much, too fast, it is likely to fall sharply, often quickly. And if a company's fundamentals slow down or start to fall, the stock may never rise to its maximum value again.

If the stock price has already risen strongly since its breakout, then what are the signs of a climactic takeoff? Watch for when it grows 25-50 percent or more in one to three weeks with increasing volume. If you see that the open was much higher than the previous close (exhaustion gap) during this period, then the stock may already be making its high.

Rule 4. The 200-day moving average has downtrend.

With the help of many different charting programs on the Internet, you can calculate the average price of a stock for different periods. The 200-day moving average has become a type of comparative indicator as a trend indicator over a long period of time. Historical studies show that those stocks that "go" below this line are likely to continue their move down.

Take profits when the 200-day moving average is down.

If you own a stock that has a long-term uptrend, you still need to decide when to sell. This is difficult to do without the use of a graph. In such cases, the 200-day moving average not only helps to calculate where the support line is located, but can also serve as a timely sell signal.

The stock chart, crossing its fifty-day moving average, gives a sell signal. The stock may bounce back from this line if mutual funds and other major market players buy or add shares to positions.

If the price of a stock rises over months and years, then the 200-day moving average, which reflects the 40-week value of the behavior, becomes more useful. If a stock approaches or is near the line but bounces off of it, it is likely that institutional investors still consider the stock to be an attractive investment.

However, if the 200-day trendline begins to turn lower after a sustained advance, consider selling the stock. By this time, the demand for shares among major players no longer exceeds the offer. When a stock starts having trouble holding above the line, it's best to lock in at least some of the profits you've made.

Rule 5: Industry leaders start to struggle.

The state of the industry is best reflected by stocks - industry leaders. Find one or two stocks with the best financial performance growth and profitability. If the leaders start to decline, then most likely other stocks in the same industry will also begin to move down.

Leading stocks determine the fate of the sector.

Want to know what the future has in store for your action? Follow the leaders. Leading stocks are a barometer of market health. They also show you how a given industrial group behaves. New high-growth companies will always break out of the baseline before investors get past the bear market. If these new companies prosper, Wall Street buys their associates. If they wither, then the market will also get rid of competitors' stocks like weeds.

Recently, the market has produced more weeds than winners. Full of promises, the Dow, Nasdaq and S&P 500 indexes, having soared up, turned in the opposite direction. Stocks that seemed to be in a stable state (excellent fundamentals, compelling charts and colorful growth forecasts) are crashing and crashing.

To avoid such unpleasant surprises, keep a close eye on group leaders. If the stocks of leading companies start to fall, be prepared to dump your stocks.

Rule 6: Selling by institutional investors hits the market indices.

Institutional investors represent a large volume Money that pass through the stock market. It's immediately noticeable when these investors sell: the major indexes are moving lower on huge volumes compared to the previous session. Four, five or more of these distribution days over a period of three or four weeks always signal a market high.

The influx of institutional selling heralds a market correction.

Whether you've just started investing in stocks or have been doing it for decades, make sure you understand the importance of allocation days. A distribution day occurs when one or more of the major stock indexes falls significantly on more volume than the previous day. If you notice one or more of these signals within one or more weeks, consider it a harbinger that the market may change course after a long rise.

Rule 7. Check your watch list

The growth of earnings per share is one of the most important indicators in determining the "luckiness" of the stock. Profit also signals a downward movement of the stock. Be especially wary of stocks where earnings-per-share growth has slowed significantly for two consecutive quarters.

A sharp slowdown in earnings-per-share growth could signal a sell-off.

By relying solely on rising earnings as a timely sell signal, you can get out of a position much later than the stock has broken. While a company's earnings report is published every three months, a leader can collapse in just a few weeks or even days. This does not mean that you should forget about profit once you have bought a share. In fact, there are times when earnings growth can slow down before a stock shows signs of weakness.

Trading securities that are on the verge of a sharp increase can bring a solid trader. If a trend reaches a new high or breaks a resistance level, it attracts the attention of investors and trend speculators, which gives the price good ground for a significant increase.

The beauty of trend speculation is that it only focuses on a few indicators, such as trend, price, and , and only needs to keep a close eye on them on the chart.

This strategy has long been mastered on Wall Street and is called "breakout trading". It has been honed by such legendary traders as William O'Neill, Stan Weinstein and Nicholas Darvas.

Below are the stocks of 5 pharmaceutical companies that have all the prerequisites for a significant rise.

The first company whose stocks are approaching the nearest resistance level and have every chance of making a price break is Alphatec (ATEC), which designs, develops, manufactures and sells technologies for the surgical treatment of spinal diseases around the world. Six months ago, most of the company's share holders got rid of them, as a result of which their price collapsed by 83.3%.

The chart shows that at the end of November, Alphatec's stock price, which was over $1.2 before the August crash, hit a new 52-week low of $0.21 per share. However, on Thursday the trend reversed and broke the 20-day moving average of $0.23, and the volume of transactions increased sharply. Intraday trading volume reached 779,000 shares, surpassing the three-month average of 315,444 shares. Such a sharp spike will almost certainly provoke the beginning of active trading on breakouts and overcoming the price of new resistance levels.

If Alphatec manages to break through the resistance levels at $0.26 and $0.28, and then the 50-day moving average at $0.29, this will serve as a signal for traders to open long positions. If this happens, the company's shares may jump even stronger and break through the next resistance levels up to $0.45 or even $0.53.

In anticipation of the coveted rise, it is worth playing it safe and placing a stop order at the level of the latest support levels at $0.21-0.22. In case of a successful outcome, the stop order should be moved according to the price increase.

Another company that is expected to rise soon is Agios Pharmaceuticals (AGIO). Bearish “smeared” Agios shares, as a result of which they have fallen in price by 54.9% over the past six months.

When looking at the company's chart, the recent gap is clearly visible, bringing the price down from over $60 to a new 52-week low of $48. However, Agios Pharmaceuticals then bounced back sharply from a $48 low; at the same time, the volume of transactions also increased. If the price overcomes several key levels resistance, this will create fertile ground for stocks to be bought by trend speculators.

If the price passes the resistance level of $55, traders will immediately begin to open long positions, which will lead to an increase in trading volume. If Agios shares can make this breakthrough in a short time, the company will have every chance to fully win back the losses of the recent collapse gap and return the price to the $60 level, which promises good profits for traders who opened positions in time.

The next company is Inotek Pharmaceuticals (ITEK), which specializes in the development and commercialization of drugs for the treatment of glucoma. Inotek shares skyrocketed over the summer, climbing 93.4%.

Looking at the company's chart, one can notice the recent formation of a "double bottom" pattern from $10.05 to $10.01, accompanied by a significant decline in demand for the shares. However, on Thursday, the price broke through to the support level and broke both the 20-day moving average of $10.99 and the 50-day moving average of $10.77 per share, which increases the likelihood of its further growth.

If Inotek Pharmaceuticals can break through the $12 resistance levels and beyond, it will make the company's stock attractive for breakout trading, which will increase the volume of transactions and push the price to new heights. It is worth noting that the sooner this breakout occurs (if at all), the more likely Inotek shares are to break through the currently seemingly unattainable resistance levels of 13.36 and even $16.

The next candidate for a quick spike is Valeant Pharmaceuticals (VRX). Over the past six months, bearish trading has brought down its shares by 57.5%.

The chart shows that in November, Valeant's trend reversed sharply, and the company's shares rose from a 52-week low of $69.33 to an almost two-month high of $101.93. Since the trend reversal, the price has mostly made higher lows and higher highs, which is a sign of bullishness. price action. It's the same here: if stocks continue to break through resistance levels, it will attract breakout speculators and push prices higher.

Last on the list to look out for is Spectranetics (SPNC), which also sees a 46.5% decline two months ago after a few months ago. If for some time the price does not fall and breaks through several resistance levels, there is a great chance that its growth will become even more significant.

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It's not uncommon on financial news programs to hear stocks crash or even collapse. stock market. Unfortunately, financial literacy the average Russian layman is not at the level that would allow him to understand the full significance of such news and use it as a source of income. However, in practice, such market fluctuations do have a significant impact even on those who are far from exchange trading.

Falling refers to a decrease in price. If the share price of one company fell in price, it is not catastrophic, but when the majority of shares, or at least shares in one industry, fall in price, this leads to a fall in the indices and, possibly, to a collapse of the entire stock market.

The reasons can be very different:

• problems in a particular company;
• problems in the industry;
• problems in the country's economy;
• slowdown in global economic growth.

Moreover, the problems do not have to be global. If you look at the scale of the company, then the reason for the fall in the price of securities may be personnel changes in senior positions, fines from government agencies, the failure of projects, some unfavorable scandals in which the company has become involved. Moreover, history knows examples when just rumors were enough to reduce the price of shares - someone spread a rumor about the dismissal of the financial director, the rumor was not confirmed, and the shares had already fallen in price.

Important! The political environment also plays an important role. A striking example is what is happening to the Russian stock market in 2018 due to sanctions. The mechanism is as follows - America imposes sanctions against a number of Russian companies. Investors understand that this will limit the activities of these companies, which means that losses or at least a decrease in profits can be expected. This means that investing in these firms is no longer so profitable, and investors begin to get rid of shares, thereby provoking a fall in their value.

What is the risk of falling stocks

A simple man in the street might think that if he does not have investments in securities, then fluctuations in the stock market do not threaten him with anything. In the short term, it is quite possible that he really will not feel any changes, however, in long term the collapse of the market affects the entire economy and every citizen of the country.

However, let's look at it in order. The first thing to expect is is the depreciation of the assets of private investors. Everything is obvious here - Vasya bought 10 shares worth 1,000 rubles, and spent 10,000 on it. And the shares fell in price and now cost 500 rubles. Consequently, Vasya's investments now equal 5,000 rubles, and another 5,000 have gone nowhere.

The second logical consequence is is the fluctuation of the ruble exchange rate. Suppose Vasya followed the news and foresaw in advance that the set external factors lead to the collapse of the Russian stock market. Vasya sold his shares, but now he has a certain amount of free cash on hand, which he would like to invest profitably. But where, if we are talking about the fall of the entire market, and not the reduction in the price of the shares of a single company?

It is logical to assume that Vasya invests in foreign currency. And if there are many such "Vasyas", then this will lead to a depreciation of the ruble.

Looking at the firm level, a fall in the stock price leads to reducing the inflow of investments and, as a result, forced cost reduction, cost optimization. This will most likely affect a simple layman in the form of salary cuts, non-payment of bonuses, cuts, etc.

Important! Even if you work for a company that is not joint stock company, these changes can still affect you indirectly. For example, you planned to profitably take a mortgage on a promotion that the bank is holding for a period until the end of the year, and you have almost saved up for an initial fee. And in connection with the collapse of the stock market and the need to optimize costs, the bank revised the policy of preferential offers and social programs(and this too a good option cutting costs). And as a result, the promotion you were applying for was completed a few months earlier.

How to make money on a falling stock market

With the right approach, an economically savvy person can benefit from any situation, and the fall of the stock market is no exception. Here you can act in two ways - depending on where the market is located.

The simplest is if the market has reached the supposed bottom point, i.e. further decline is not expected. To understand the current market situation, you need to follow the forecasts of experts, for example, Finam. When the market hits the "bottom", it's time to buy, because further the stock price will rise.

For example, you have long wanted to invest in Gazprom shares. Of course, these are not cheap securities, but at the time of the market collapse, even they become cheaper. The investor's goal is to buy them at the lowest price before they start to rise again. What he will do next - receive income in the form of dividends or simply sell, having received a profit in the form of a speculative difference, is no longer so important.

A more difficult situation is when the “bottom” is not yet in sight. The fall has just begun or is only predicted by experts. Logic tells you to sell shares, but what if you don't have them?

This is where the so-called short or short position comes to the rescue. The bottom line is this: you come to a broker and “borrow” 500 shares of the Romashka company from him, which now cost 1,000 rubles apiece. Your investment is 500,000 rubles. You sell these shares, wait for the fall, buy the shares already at a reduced price (600 rubles apiece) and return them to the broker. Your expenses are 300,000 rubles. Of course, a certain commission to the broker is deducted from this amount, because. he lent you shares not just like that, but at interest.

Important! A short trade can bring big profits, or it can turn into big losses. The main problem is that when you buy shares, you risk exactly the amount that you invested, however, when selling shares that you did not actually own, according to short position your losses can be limitless.

Let's return to the example with the shares of the Romashka company. Suppose, contrary to forecasts, their value did not fall, but rose, and now they cost 1,500 rubles. a piece. Thus, you will have to buy 500 shares at 1,500 to return them to the broker - this is 750,000 rubles, plus pay a commission. As a result, you lost much more than you invested - and the scale of losses is difficult to predict, because. The share price can rise almost indefinitely.

The current situation in the Russian stock market

In early August 2018, the details of America's new sanctions bill were made public, which provides for the freezing of the assets of seven large Russian banks, including Sberbank, VTB, VEB and a number of others. This will be accompanied by a ban on operations in the United States. Plus, there is a sanctions weakening of the ruble - the euro for the first time in several months again exceeded the bar of 75 rubles.

Thus, we observe one of those phenomena when foreign policy individual states directly affects the stock markets. As a result of trading on August 8, the securities of the largest Russian issuers have already begun to fall, and those few that have risen in price can boast only a slight increase.

Therefore, if you were planning to capitalize on the fall of the stock market, now is the time to act.

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Hello. Explain why stocks rise and fall. It is clear that everything depends on the number of sellers and buyers in the market, but why do investors make a decision to buy or sell? What influences their decision?

Anatoly

Anatoly, to put it simply: when investors see that a company's business is expanding, and profits are growing and there are no visible reasons for a fall, investors buy shares. Demand rises - share price rises. And vice versa: if it is clear from the news that the company will have problems with profit, the shares are sold.

Sergei Shabolkin

private investor

Let's look at a few specific examples.

Economic situation

When news comes out that could affect a company's business, investors react by buying or selling shares.

April 7, with whom you cannot work - otherwise you will fall under sanctions. April 9 foreign investors started selling Russian shares.

Russian investors were also afraid of the sanctions: a short-term panic began - almost all stocks fell that day in price. Then some investors came to their senses: a share is a share in a business, which means that a shareholder can receive dividends.

Who remembers this - bought shares and expects a high dividend yield. Some companies took advantage of the panic and bought back their shares from the market.

Another example: in March Then it seemed that NLMK would suffer from sanctions: the company has its own factories in the USA and 18-20% of its revenue comes from North America. Investors were selling NLMK shares - the share price fell, although management said that the sanctions would not affect the company's work. Check the words of the management when the NLMK report for the 2nd quarter of 2018 is released - then the effect of the sanctions will be visible.

Along with NLMK, shares of other metallurgical companies - MMK and Severstal - fell. But the first company does not sell steel to the US, while the second company has only 5% of sales to North America.

Reporting results

The price of a share can rise or fall when a company releases a report that is above or below shareholder expectations.

On February 22, 2018, Lenenergo's report for 2017 was released: profit increased by 66%, to 12.6 billion rubles. Experienced investors knew that according to the charter, 10% of profits must be directed to dividends on preferred shares.

Investors took out calculators and calculated potential dividends per preferred share - it turned out to be R 13.48. On February 22, the share cost 87 rubles, dividend yield- 15.5%. Given that deposit rates are falling, the yield is high. Investors started buying preference shares"Lenenergo", and the price increased by 17% in four days - up to 102 rubles. Smart investors looked at quarterly reporting and considered potential dividends as early as mid-2017.

Reverse example. In October 2017, Magnit released a report for 9 months of 2017: profit fell by 53% compared to 9 months of 2016. In the three days following the release of the report, the stock fell 20%. At the end of 2017, profits fell by 32%, and with them dividends: they depended on profits.

But these are two radical examples. Usually good companies show profit growth of 10-20% in each quarter compared to the previous year. By the end of the year, some investors remember the company's shares and start buying them. But you can be smarter and follow the quarterly reports of companies.

Share buyback

Companies can buy back their shares from the market - this shows investors that management is confident in the company's business. A large buyer (company) enters the market and starts buying shares. Shares become smaller when demand is formed - the share price rises.

The company does not redeem shares immediately, but in small tranches. The effect of share repurchase is stretched for 3-6 months. It all depends on the amount and duration of the ransom. For example, Starbucks plans to buy back $20 billion worth of shares by 2020, which is 27% of the current market capitalization.

Debt repayment

It often happens like this: a company has a lot of debts, it has just started to make a profit. Novice investors expect high dividends, and management sends them to pay off debts.

Paying off debt is good for a long-term investor. The company pays off its loans and stops paying interest to banks. In the long run, this leads to higher profits. Debt repayment affects the share price if the company has a lot of debt - this can be found by the debt / EBITDA multiplier. For June, 2018 applicants for serious repayment of debts - IDGC of the North-West and IDGC of the South.

Incidents

Industrial accidents are a problem for all industrial companies. The more severely the accident affects the production of raw materials, the greater the potential drop in profits and share prices.

On August 4, 2017, an accident occurred at the Mir diamond mine: the mine was flooded and it became unsuitable for diamond mining. The mine is owned by Alrosa. The problem with diamond mines is that there are few of them and in order to start mining, you need to develop the area. Alrosa lost the mine until 2022, and with it the profit from the mine. Now the company has to sell inventory.

These are not all cases due to which the share price rises or falls. The general conclusion is this: everything that can help grow the revenue and profits of the business is good; anything that can hurt is bad. Investors react to good and bad by buying or selling shares.

Since last week, the largest US technology companies have fallen in price by almost $ 100 billion. What will happen to the shares of IT corporations next and is it worth buying them?

Amazon warehouse in Phoenix (Photo: Ralph D. Freso / Reuters)

The past week ended with a sharp collapse in the quotations of the five largest US technology corporations on the NASDAQ exchange, at the same time they are the most valuable public companies in the world. As a result of trading on Friday, June 9, shares of the social network Facebook, Amazon online hypermarket, gadget developer Apple, software manufacturer Microsoft and owner search engine Google - Alphabet - fell in price by more than $ 97.5 billion.

Apple's quotes showed the greatest drop: the papers of this corporation collapsed by almost 4%, to $145.52 apiece. Shares of other IT giants fell by more than 3%. On Monday, June 12, the papers of the "big five" continued to fall in price. By the close of trading on that day, Apple's capitalization had fallen by a total of 6.4%, Amazon's by 4.4%, and the other three corporations by 3.8-4%. Against this background, the index of high-tech companies NASDAQ Composite since Friday fell by 2.31% to 6175.46 points.

The current dynamics of the shares of the "big five" was the worst since the beginning of the year. Prior to this, the papers of IT giants showed steady growth, outperforming broad indices. So, from January 3rd to June 8th Apple shares managed to rise in price by 33.4%, Amazon - by 34.05%, Facebook - by 32.4%, Alphabet - by 24.3%, and Microsoft - by 15%. For comparison, the NASDAQ Composite index rose only 16.45% over the same period, while the S&P 500 indicator rose 7.8%. It is noteworthy that two days before the collapse on the NASDAQ stock exchange, the Swiss investment bank Credit Suisse issued the most promising shares of the IT sector, which should show the greatest growth in 2017. This list also includes the securities of the Big Five, which, according to the bank's forecast, will rise in price by 8.7-14.5% this year.

What happened

Financiers surveyed by RBC consider the collapse of the Big Five shares to be a technical correction after a long rise. Part of it was provoked by the analytical report of the investment bank Goldman Sachs, published on June 9, they say. In this review, analysts expressed doubts about the future prospects of the "big five" stocks, which, in their opinion, look overbought.

Photo: Brendan McDermid / Reuters

Since the beginning of the year, the capitalization of these companies has increased by $ 600 billion: investors have increased investments in the IT sector, considering it more resistant to political risks, which have increased sharply after the election of Donald Trump as President of the United States. At the same time, the Big Five companies, being leaders in terms of profitability, are inferior to other industry participants in terms of profit growth and volume. total assets, experts at Goldman Sachs say. According to them, the volatility of these stocks is now lower than that of the S&P 500 index, which reduces the opportunity for traders to capitalize on them.

Vadim Bit-Avragim, Senior Portfolio Manager at Kapital Management Company, also links the drop in IT companies' quotes to the discussion in the US Congress with a possible increase in the tax burden on corporations actively hiring employees outside the country. Since IT giants like Microsoft and Apple traditionally attract highly skilled workers from abroad, the passage of such a law could hit their businesses and scare off investors at the same time, he notes.

Deputy CEO on investment analysis IC Zerich Capital Management Andrey Vernikov adds that the sale of the Big Five securities may be associated with the desire of investors to get rid of risky assets before the likely worsening of the external environment. “The market is waiting for the Fed’s decision on interest rate to be announced on Wednesday, June 14th. Even in France, the second round of parliamentary elections will be held. Everyone knows that the party of Emmanuel Macron will get the majority, but it will have to take unpopular measures that are traditionally met with protests in France,” says Vernikov.

Is it possible to buy

The fall of the "Big Five" shares should not be regarded as a long-term downtrend in the securities of the IT sector, Mikhail Aristakesyan, head of global markets research at FG Finam, is convinced. Like other experts interviewed by RBC, he considers the fall of these shares to be a short-term correction. However, he advises investors interested in the IT sector to select securities not by market capitalization, but based on fundamental indicators (profit dynamics, revenue, audience, etc.). “The growth will not be so strong, but such a portfolio will be diversified and more secure. You can also use one of the industry exchange-traded funds (ETF) for this purpose, ”the analyst notes.

Portfolio manager of Raiffeisen Capital Anton Kravchenko, in turn, recalls that the Big Five companies also had fairly strong fundamentals. “Big Five stocks outperformed the broad market significantly amid strong financial results, which they have shown recently, reporting better than consensus forecasts, ”he emphasizes. According to the financier, the current correction is due to the fact that some investors, for one reason or another, decided to take profits. In the future, the stocks of the "big five" may go up.

Bit-Avrahim from Capital Management also sees good prospects for American IT companies. “I think that the growth of these shares will resume soon, as the IT sector is best suited for long-term investments, and the current weakness of the market gives a real chance to open additional long positions on it, ”he is convinced.

However, Andrey Vernikov from Zerich Capital Management thinks that against the backdrop of growing uncertainty on global markets, papers of IT companies will suit only speculator traders. “For those who do not know how to speculate, I advise you to buy protective assets, such as gold,” the expert sums up.